The Department of Finance (DOF) said the Marcos administration would push for a new mining fiscal regime to increase public tax revenues and promote transparency.

During a Senate hearing on Tuesday, Aug. 16, Finance Secretary Benjamin E. Diokno said that the proposal rationalization of the mining fiscal regime is among the measures being supported by the new administration.

Once enacted into law, Diokno said the new mining fiscal regime “will encourage full public disclosure on extractive industry and increase government share by imposing a single fiscal regime applicable to all mining agreements.

To recall, the rationalization of taxes on mining was included in the Fiscal Consolidation and Resource Mobilization Plan proposed by former Finance Secretary Carlos G. Dominguez III to the Marcos administration.

Dominguez’s fiscal consolidation package, however, failed to secure the support of President Marcos.

But last Aug. 3, Diokno announced that the DOF, under his leadership, would create an enabling environment for mining activities to flourish in the country.

He explained that the industry is a potential source of sustained economic growth.

“The mining industry holds the greatest potential to be a key driver in our economic recovery and long-term growth, especially now that world metal prices are high,” Diokno said.

“The Philippines, after all, is one of the world’s most richly endowed countries in terms of mineral resources,” he added.

“We recognize that apart from boosting local development, mining is a strong magnet for investments that can propel our economy into a higher growth trajectory,” Diokno said.

But Diokno also pointed out that the government expects the mining industry to strictly adhere to responsible and sustainable mining practices.

He said that the mining industry should strike a balance between protecting the environment, uplifting local communities, and supporting the government’s socioeconomic agenda.

“This is a non-negotiable condition so we can guarantee the sustainability of the industry and the strong economic growth of its host communities,” Diokno said.

Currently, the share of the mining output to gross domestic product (GDP) was a mere 0.06 percent.

Mining used to be a huge contributor to the economy, particularly in the 1980s when the industry accounted for 21 percent of the country's export earnings and over two percent of GDP.